Introducing the RIA Rental Investment Analysis – your trusted co-pilot for streamlining rental property investment.
It is a web based analysis site that crunches the numbers to provide invaluable financial insights.
It has a Chrome Extension
that seamlessly gathers data from Zillow listings. This powerful tool not only saves vital information but also
with RIA, comparing and selecting the perfect investment property has never been easier.
The Analysis Page shows a table with the following columns. To view detailed analysis for a property, click the
'detailed analysis' link. Also, the address is linked with the MLS URL, redirecting to MLS the data was collected.
Analysis
Address
type
price
Gross Rent Multiplier (GRM)
Internal Rate of Return (IRR)
1st Year Net Operating Income (NOI)
1st Year Capitalization Rate (Cap Rate)
1st Year Cash Flow
1st Year Cash on Cash Return
Detail Analysis Of A Property
This page shows detailed analysis of a property. At the top, it shows property information and basic
assumptions made while calculating various metrics. You can always change these parameters in popup.html.
This page shows three tables as follows:
Summary table: This contains Gross Rent Multiplier (GRM), Internal Rate of Return (IRR),
Net Present Value (NPV), Final proceed (after deducting mortgage and brokerage).
Comparison of NPV and cash flow with Bond and S&P 500 investment.
Detailed breakdown of cash flow for each year of the investment.
What is coming next?
Present version takes default value of growth for the entire USA, which is very far from real
situation. In future versions, the plan is to use more dynamic location based default.
Present version can't differentiate new houses, well-maintained old houses, and poorly-maintained
houses. In future versions, the plan is to include the cost of repair to make it well-maintained and also
adjust maintenance cost asked on the age of the house.
Definitions:
Net Present Value (NPV): How much an investment is worth throughout its lifetime,
discounted to today's value.
Net Operating Income (NOI): How much money you make from the investment property.
It is calculated by taking total income and then subtracting operating expenses. This does not
include mortgage payments as those are not considered operating expenses.
Capitalization Rate (Cap Rate): It’s the ratio between the amount of income
produced by a property to the original capital invested. It shows the percentage of the investment’s
value that’s profit. Internal Rate of Return (IRR)
Internal Rate of Return (IRR): This estimates the return of value of each dollar
invested over its holding period. It’s the rate of growth that a property has the potential to
generate. The calculation goes beyond net operating income and purchase price to estimate long-term
yield.
Cash Flow: Net cash left at the end of the year after you’ve received your rents
and paid your expenses. This includes mortgage EMI, potential fund for maintainable etc. It does
not deduct taxable depreciation.
Cash on Cash Return: The total return on the money invested in your real estate
investment.
Gross Rent Multiplier (GRM): GRM is calculated by dividing the property’s price by
its gross rental income.
Settings Page
Settings Page
shows default values of various parameters necessary for investment related financial analysis. You can change these
default values to suit yourself. Change of the parameter doesn't invalidate the collected data. Just open
the analysis page again after your change, and the analysis page will be generated based on the changed
setting.
FAQs:
Nothing appears in my Analysis page!
You need to upload data into the site for analysis. To upload real estate information please download the Chrome Extension.
How to use the chrome extension can be found in RIA Extension Document.
Once the extension collect data as you browse property site, like zillow.com, you will find analysis in analysis page.
RIA - Rental Investment Analysis Home Page.